Investing

Goldman Sachs Maintains State Street Neutral Recommendation

George Maybach

Published: July 17, 2023 8:55 am

Last Updated: July 17, 2023 12:16 pm

Fintel reports that on July 17, 2023, Goldman Sachs maintained coverage of State Street (NYSE:STT) with a Neutral recommendation.

Analyst Price Forecast Suggests 28.28% Upside

As of July 6, 2023, the average one-year price target for State Street is 87.36. The forecasts range from a low of 69.69 to a high of $105.00. The average price target represents an increase of 28.28% from its latest reported closing price of 68.10.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for State Street is 12,448MM, an increase of 2.84%. The projected annual non-GAAP EPS is 8.40.

State Street Declares $0.63 Dividend

On May 17, 2023 the company declared a regular quarterly dividend of $0.63 per share ($2.52 annualized). Shareholders of record as of July 3, 2023 received the payment on July 13, 2023. Previously, the company paid $0.63 per share.

At the current share price of $68.10 / share, the stock’s dividend yield is 3.70%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.99%, the lowest has been 1.80%, and the highest has been 4.81%. The standard deviation of yields is 0.51 (n=236).

The current dividend yield is 1.39 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.31. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.21%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 1785 funds or institutions reporting positions in State Street. This is an increase of 46 owner(s) or 2.65% in the last quarter. Average portfolio weight of all funds dedicated to STT is 0.28%, a decrease of 11.61%. Total shares owned by institutions decreased in the last three months by 4.08% to 373,483K shares. The put/call ratio of STT is 1.42, indicating a bearish outlook.

What are Other Shareholders Doing?

Dodge & Cox holds 21,831K shares representing 6.53% ownership of the company. In it’s prior filing, the firm reported owning 21,944K shares, representing a decrease of 0.52%. The firm decreased its portfolio allocation in STT by 3.54% over the last quarter.

DODGX – Dodge & Cox Stock Fund holds 15,597K shares representing 4.67% ownership of the company. No change in the last quarter.

Ameriprise Financial holds 12,371K shares representing 3.70% ownership of the company. In it’s prior filing, the firm reported owning 11,157K shares, representing an increase of 9.81%. The firm decreased its portfolio allocation in STT by 80.91% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 10,126K shares representing 3.03% ownership of the company. In it’s prior filing, the firm reported owning 7,778K shares, representing an increase of 23.19%. The firm increased its portfolio allocation in STT by 17.31% over the last quarter.

Invesco holds 9,769K shares representing 2.92% ownership of the company. In it’s prior filing, the firm reported owning 10,166K shares, representing a decrease of 4.06%. The firm decreased its portfolio allocation in STT by 91.73% over the last quarter.

State Street Background Information
(This description is provided by the company.)

State Street Corporation is one of the world’s leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $33.52 trillion in assets under custody and/or administration and $3.05 trillion* in assets under management as of June 30, 2020, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide.

Additional reading:

• STATE STREET REPORTS SECOND QUARTER 2023 EPS OF $2.17 % changes noted below reflect year-over-year 2Q comparisons TOTAL REVENUE UP 5% NET INTEREST INCOME GROWTH OF 18% STRONG FLOWS IN ASSET MANAGEMENT PRE-TAX MARGIN OF 29.5% AND ROE OF 13.0% RETURNED
• STATE STREET CORPORATION EARNINGS RELEASE ADDENDUM 4-YEAR SUMMARY OF RESULTS (Dollars in millions, except per share amounts, or where otherwise noted) 2019 2020 2021 2022 Year ended December 31: Total fee revenue $ 9,147 $ 9,499 $ 10,012 $ 9,606 Net
• July 14, 2023 NYSE: STT 2Q 2023 Financial Highlights Exhibit 99.3 2 Preface and forward-looking statements This presentation includes certain highlights of, and also material supplemental to, State Street Corporation’s news release announcing its sec
• Page 1 State Street Corporation Announces Transition Information for Outstanding U.S. Dollar LIBOR-Linked Instruments BOSTON, June 07, 2022 State Street Corporation (NYSE: STT) today announced information regarding the transition of its presently out
• STATE STREET CORPORATION AMENDED AND RESTATED 2017 STOCK INCENTIVE PLAN 1. Purpose The purpose of this Amended and Restated 2017 Stock Incentive Plan (the “Plan”) of State Street Corporation, a Massachusetts corporation (the “Company”), is to advance

This article originally appeared on Fintel